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Rooftop solar outlook dims in Spain amidst lower energy rates

Spanish families and companies set up fewer roof solar power systems in the very first quarter of the year, extending a pattern sparked by lower energy prices, inflation and the fading impact of subsidies and casting a cloud on the outlook for the year.

The decrease was mainly in smaller domestic systems last year, however it is now infecting larger-scale installations, solar industry group UNEF stated on Tuesday.

The capacity set up between January and March fell roughly 26% from the exact same period in 2015, UNEF CEO Jose Donoso informed an occasion in Madrid.

Companies in specific are holding back on solar installations to power commercial and commercial facilities, with brand-new capacity down 22% and 30% respectively, compared to a. 15% fall in domestic installations.

The residential sector is bottoming out, but the fall. is infecting the commercial sector, Donoso stated.

While consumers in the business and industrial sectors. still see solar as a great investment, the decline in energy. costs has actually gotten rid of the sense of seriousness, Jon Macias, president. of eco-friendly lobby APPA's rooftop solar branch, informed .

In the commercial sector, the word 'urgency' was. changed by the word 'crucial', he stated. That is, I have to. do it however not right now. I can do it in the medium term, he. said.

APPA now expects the sector to add some 1.4-1.6. gigawatts (GW) of capacity, down from 1.9 GW in 2023 and the. record 2.6 GW accomplished in 2022.

Earlier this year, it anticipated 2024 to be in line with. in 2015.

Donoso urged the government to use new tax breaks and. fiscal incentives to companies and households installing solar. systems and to improve the regulatory structure for shared. jobs, in which photovoltaic panels offer energy to groups of. consumers rather than a single home.

The downturn follows the marketplace boomed between 2018 and. 2022, boosted by generous aids and sky-rocketing energy. costs after Russia attacked Ukraine.

Some companies, which rapidly expanded their operations to. ride the wave, are now posting countless euros in losses and. announcing huge layoffs.

To fulfill the high need for installation, these companies. increased their labor force, however when costs fell in 2023 and. need slowed, they needed to deal with really high repaired expenses, stated. Victor Peiro, head of equity research study at GVC Gaesco.

(source: Reuters)